topic Sale of Business Property Form 4797 in Investors & landlords

Sale of Business Property Form 4797

Benjamine — Mon, 09 Mar 2026 05:51:01 GMT

Sold (traded in) vehicle in 2021 used partially at two rental properties since 2018. Trade in allowance $25,000 ending mileage 58,791. Prior depreciation calculated using depreciation rate for prior years.

Property A Total Biz miles 1322 (excluding 52 biz miles in 2021) resulting in 2.24% biz use = $560 biz portion sales price. Prior depreciation $348

Property B Total Biz miles 1436 (excluding 113 biz miles in 2021) resulting in 2.44% biz use = $610 biz portion sales price. Prior depreciation $482

Form 4797 Sales of Biz Property:

Property A

(d) Gross Sales Price (e) Deprec Allowed (f) Cost or other basis (g) Gain/loss

$560 $362 $998. $ -76.

Property B

(d) Gross Sales Price (e) Deprec Allowed (f) Cost or other basis (g) Gain/loss

$610 $511. 2,168. $ -1,047.

Since the % of use is so close, I do not understand how the losses in column G are so different. I do not know where the calculations for (f) cost or other basis is generated from. I entered $32,000 as the original purchase price (no trade or prior business use when vehicle placed in service nor any expense of sale).

Please advise!

Re: Sale of Business Property Form 4797

Mike9241 — Thu, 17 Feb 2022 18:13:28 GMT

the cost basis is wrong.

32000 * .0224 = 717

32000 * .0244 = 781

we can't see what you entered. so you should contact support.

Re: Sale of Business Property Form 4797

Benjamine — Thu, 17 Feb 2022 21:19:44 GMT

Thank you for the quick response! I have a call into TT for assistance.

However, to clarify, my cost basis is the purchase price times the percentage of business use? And, my business portion of sales price is the trade-in allowance ($25,000) times the percentage of business use?

I did not know I needed to include my business use percentage to the purchase price. Just want to confirm that information. This is all new (and greek to me) - I also sold another vehicle so it's double trouble for me this year. The second vehicle was not placed in service until 14 years after purchase. Do I use the fair market value at the times the percentage of business use as the cost basis for that vehicle? Do I also include the original purchase price?

Thanks again!

Re: Sale of Business Property Form 4797

Benjamine — Sun, 20 Feb 2022 17:01:40 GMT

I contacted TT but they only assistance they could provide was to delete Form 4797 and re-enter the info. I deleted the Forms and then deleted the vehicle info under the rental property section.

I then went back to prior answers to my question and followed the advice to convert the vehicle to personal use and enter the sale on the Business Sale of Property - I selected Recapture ... or Listed Property. The next screen asks if business use fell to below 50% for the first time in 2021. I selected no since it had not. The interview then ends and does not generate Form 4797.

I posed another question to you but did not receive a response.

Could someone please help me with these issues?

Re: Sale of Business Property Form 4797

RobertB4444 — Mon, 21 Feb 2022 04:22:34 GMT

What you're trying to do is a genuinely tricky thing. Be sure that you want to do it yourself.

I'm assuming you have not been carrying these cars on your rental property for years because then you just click the "I sold this property this year" button and enter the numbers.

If you're just putting it in this year then go to Wages and Income. Go to sales of Business property. Enter the sale there by taking the business use percentage of every number and entering it here.